Nadhim Zahawi – live: Sunak rejects claims ex-chancellor was treated unfairly

Downing Street has rejected claims made by allies of Nadhim Zahawi, who have claimed he was treated unfairly during ethics adviser Sir Laurie Magnus’ short investigation into his tax affairs.

The ex-chancellor’s allies told The Spectator that he had told Tom Scholar, then permanent secretary at the Treasury, about the HMRC fine he received in September.

They also claim his ministerial register of interests was up to date in September, despite Sir Laurie Magnus’s report stating that he had failed to update it until this month.

But Rishi Sunak’s official spokesman rejected the idea any government officials knew of a penalty in September. “The penalty fact was not set out until a later date. As the [ethics adviser] made clear, [Mr Zahawi] did not declare the details of the fine … until January.”

Zahawi allies also said he only got a 30-minute hearing from Sir Laurie on Wednesday. But it is understood Mr Zahawi and Sir Laurie had a second conversation on Saturday.

Downing Street said Sir Laurie was working to publish the latest ministerial register of interests but gave no time line. The latest list was released back in May 2022.

Key Points

• Sunak defends his handling of Zahawi tax scandal

• Nadhim Zahawi ‘furious’ over sacking as allies lash out at tax probe report

• Rishi Sunak sacks Nadhim Zahawi after tax probe finds ‘serious breach’ of rules

• Rishi Sunak continues to face questions over Nadhim Zawahi

• Allies say Zahawi was sacked without 'fair hearing'

Monday 30 January 2023 03:58 , Stuti Mishra

Good morning and welcome to The Independent’s live blog following all the latest happening in Westminster after the prime minister sacked Nadhim Zahawi following a row over his tax arrangements.

Rishi Sunak continues to face questions over Nadhim Zawahi

Monday 30 January 2023 04:31 , Stuti Mishra

Rishi Sunak still faces questions about his own knowledge of Nadhim Zahawi’s tax affairs, after he moved to sack the Tory chairman.

The prime minister fired the Conservative Party chairman early on Sunday morning, shortly after an ethics inquiry into Mr Zahawi found that he had committed a “serious breach” in the handling of his tax affairs.

Both Labour’s deputy leader Angela Rayner and party chairwoman Anneliese Dodds have written to Mr Sunak to ask him what he knew about the investigation into Mr Zahawi’s tax affairs and when.

Urging the prime minister to “come clean”, Ms Rayner said that the “hopelessly weak prime minister has been dragged kicking and screaming into doing what he should have done long ago”.

Read more:

Sunak remains under pressure after Zahawi sacking

Zahawi timeline: How the former minister’s tax controversy played out

Monday 30 January 2023 04:50 , Stuti Mishra

Rishi Sunak has sacked Nadhim Zahawi following the conclusion of an ethics inquiry and several days of intense pressure.

The prime minister dismissed the Tory Party chairman who was also in the Cabinet as minister without portfolio, saying that with the inquiry concluded “it is clear that there has been a serious breach of the ministerial code”.

The controversy had centred on a tax bill over the sale of shares in YouGov, the polling firm Mr Zahawi founded. The shares, worth an estimated £27 million, were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi’s family.

Here’s how the events played out:

Zahawi timeline: How the former minister’s tax controversy played out

What does Nadhim Zahawi sacking mean for Dominic Raab?

Monday 30 January 2023 05:10 , Stuti Mishra

After Nadhim Zahawi’s sacking, all the attention has now turned to Dominic Raab – one of Rishi Sunak’s closest allies who has been the subject of bullying allegations.

The deputy prime minister remains under investigation by senior lawyer Adam Tolley KC. He has denied all allegations.

Adam Forrest looks at whether the PM’s zero-tolerance approach to ministerial code breaches spells trouble for Raab.

What does Nadhim Zahawi sacking mean for Dominic Raab?

Video: Michael Gove reacts to news of Nadhim Zahawi sacking

Monday 30 January 2023 06:24 , Stuti Mishra

PM has ‘done the right thing’ in sacking Zahawi, says Scottish Tory chairman

Monday 30 January 2023 05:45 , Stuti Mishra

PM has ‘done the right thing’ in sacking Zahawi, says Scottish Tory chairman Rishi Sunak made “the right decision” by sacking Nadhim Zahawi, the chairman of the Scottish Conservative Party has said.

Craig Hoy told the BBC’s Sunday Show: “It was only right and proper that he asked Sir Laurie Magnus, his ethics adviser, to look into this issue, and so Laurie has come back and swiftly concluded that Nadhim has broken the Ministerial Code and the prime minister has then acted decisively in removing Mr Zahawi from office.

“I think the prime minister has done the right thing really.”

Allies say Zahawi was sacked without 'fair hearing'

Monday 30 January 2023 06:20 , Stuti Mishra

Allies of Nadhim Zahawi have claimed that the MP had lost his job without getting a “fair hearing”.

The Telegraph has reported citing people close to the MP that he was only given a 30-minute meeting with the independent adviser to defend himself.

Voices: I broke the Nadhim Zahawi story – why did it take them this long to sack him?

Monday 30 January 2023 06:40 , Stuti Mishra

Simon Walters writes:

“When I broke the story of Nadhim Zahawi’s scandalous tax affairs, last July, he should have been sacked in six days. I never for a moment thought he would cling on for nearly six months.”

Read the full story here:

I broke the Zahawi story, why did it take them this long to sack him? | Simon Walters

"What took you so long, Rishi?" UK front pages lead with Zahawi's sacking

Monday 30 January 2023 07:05 , Stuti Mishra

Nadhim Zahawi leads Monday’s papers after he was sacked following a breach of the ministerial code over his tax affairs.

The Independent asks why it took so long for Mr Zahawi to be sacked after he breached the ministerial code seven times and failed to apologise for lashing out at the media.

The Times reports allies of Rishi Sunak have said the prime minister will take a zero-tolerance approach to future breaches of the ministerial code after sacking Mr Zahawi.

Check out more front pages:

What the papers say – January 30

Rishi Sunak completes 100 days in Downing Street - what were the key events?

Monday 30 January 2023 07:51 , Stuti Mishra

The UK’s third and final prime minister of 2022 was swept into Downing Street by Tory MPs as the party searched for stability after the chaotic and brief tenure of Liz Truss.

It has now been 100 days since Rishi Sunak entered No 10. Here’s how his honeymoon period has played out:

What were the key events of Sunak’s first 100 days?

Tories ‘drowning in sleaze’, says Labour

Monday 30 January 2023 07:53 , Adam Forrest

The chairwoman of the Labour Party has accused Rishi Sunak of propping up a “rogue’s gallery” of ministers following Nadim Zahawi’s sacking on Sunday.

Anneliese Dodds – who has accused the Tories of “drowning of sleaze” – told the BBC Radio 4 Today programme her party has written to the PM to ask when he found out about the HMRC investigation into the former Tory chairman.

She said: “There are serious questions for Rishi Sunak to answer. What did he know about the investigation into Nadim Zahawi, the amount of money he had paid in unpaid tax and the penalty he had to pay?”

“Why did Rishi Sunak say in parliament that there weren’t questions to be answered about Mr Zahawi’s tax affairs and why do we see our prime minister continuing to prop up such a rogue’s gallery of ministers?”

Referring to Suella Braverman and Dominic Raab, she added: “We also have a very senior minister who has broken security rules, we also have allegations of bullying against a senior minister, this seems to be a case of Rishi Sunak putting his party’s interest above the country’s interest.”

Zahawi had 'opportunities' to be 'more transparent', says minister

Monday 30 January 2023 08:20 , Stuti Mishra

Former Tory chairman Nadhim Zahawi had “opportunities” to be “more transparent” about his tax affairs, according to health minister Helen Whately.

The Conservative Party member told Sky News: “That is one of the things that the independent ethics adviser set out in his report, that there were opportunities for Nadhim Zahawi, (he) could have been more transparent about his affairs.”

“So when you’re appointed a minister you get asked a series of questions, you have to fill in your register of interests. Those were opportunities when he could have been transparent and he wasn’t.”

“That was one of the reasons why he was seen to have not complied with the ministerial code, which led to the prime minister’s decision to remove him from office.”

She added: “The prime minister was not informed of these things and you would have expected Nadhim Zahawi to declare it in the process.”

Nadhim Zahawi ‘furious’ over sacking as allies lash out at tax probe report

Monday 30 January 2023 08:47 , Maryam Zakir-Hussain

Nadhim Zahawi is said to be “furious” about his sacking by Rishi Sunak as Tory party chairman after an ethics probe found serious breaches of the ministerial code over his tax affairs.

The prime minister fired Mr Zahawi on Sunday morning, more than six months after The Independent first revealed details of an HMRC investigation into Mr Zahawi’s tax affairs.

Mr Sunak’s adviser Sir Laurie Magnus found he had broken ministerial rules seven times by failing to be open and honest during the tax saga – including by making “untrue” public statements.

But allies of Mr Zahawi claimed that the MP had lost his job after being given only limited time to make his case, with claims he was only given a 30-minute meeting with Sir Laurie to defend himself.

Read more from Adam Forrest:

Nadhim Zahawi ‘furious’ over sacking as allies lash out at tax probe

Questions about Zahawi’s role as MP are for chief whip, minister says

Monday 30 January 2023 09:10 , Maryam Zakir-Hussain

Questions about whether Nadhim Zahawi remains a Conservative MP are for chief whip Simon Hart, according to a minister.

The prime minister’s ethics tsar, Sir Laurie Magnus, said the former Tory chairman had made an “untrue public statement” in relation to reaching a tax settlement with HMRC, with Rishi Sunak deciding to sack him following several breaches of the ministerial code.

Health minister Helen Whately, asked why Mr Zahawi retained the Tory whip after making an untrue statement, told BBC Radio 4’s Today programme: “The prime minister removed Nadhim Zahawi from office after that report from his independent ethics adviser.

“And questions on the whip are one for the Chief Whip.”

Asked whether MPs were “allowed to make untrue public statements”, Ms Whately said: “I don’t think any MP should say something that is untrue.”

Pressed on whether Rishi Sunak was “comfortable” with Mr Zahawi remaining a Conservative MP, she replied: “I’m not going to speculate on what happens in the future.”

Asked whether Mr Zahawi’s whipping arrangements were under consideration, the Faversham and Mid Kent MP said: “There is nothing further I can say to you on this question, I have told you what I know.”

Nadhim Zahawi should ‘consider his position’ as MP, says senior Tory

Monday 30 January 2023 09:40 , Maryam Zakir-Hussain

Nadhim Zahawi standing down as a Conservative MP ahead of the election would be the “best outcome” after his sacking over rule breaches, a senior Tory figure has said.

Rishi Sunak fired Mr Zahawi after his ethics adviser found “serious” violations of the ministerial code over his tax affairs, more than six months after The Independent revealed an HMRC investigation.

Senior Tory MP Sir Geoffrey Clifton-Brown – treasurer of the party’s powerful 1922 committee – said Mr Zahawi should now consider resigning his Stratford-Upon-Avon seat.

“I’m seriously unhappy with the way he’s handled it,” Sir Geoffrey told BBC 5 Live. “He knew perfectly well he had paid a [tax] penalty.

“At that point he should have either said to the prime minister, ‘Look this has happened – you should know this before you appoint me’. Or at least when [the penalty] got into the public domain … he should have resigned immediately.”

Adam Forrest reports:

Nadhim Zahawi should ‘consider his position’ as MP, says senior Tory

Senior Tory backbencher says Zahawi had to go

Monday 30 January 2023 10:01 , Maryam Zakir-Hussain

A senior Conservative backbencher has said Nadhim Zahawi had to go as Tory Party chairman because the question of whether he remained a minister had become the “dominating issue” in politics.

Tobias Ellwood, who is also chair of the Defence Select Committee, told Kay Burley on Sky News: “Nadhim has been one of my closest friends in Parliament, I am very saddened by what happened.

“He clearly thought when it was labelled as careless rather than deliberate ... that he could ride this through.

“The prime minister rightly had a review of this because it became this dominating issue, nobody could go into an interview studio and not be asked about it, and when you get to that point then the prime minister has to act.

“He called this review, he got the results, and he acted.”

Sunak defends his handling of Zahawi tax row

Monday 30 January 2023 11:02 , Maryam Zakir-Hussain

Rishi Sunak defended his handling of the Nadhim Zahawi row, with the prime minister stressing his commitment to “integrity” and the need to follow the proper process.

The prime minister, speaking in County Durham, said: “What I have done is follow a process, which is the right process.

“Integrity is really important to me – all of you guys want to see that government is run properly, that it is run with integrity and there’s accountability when people don’t behave in the way that they should or if something doesn’t go right, and that’s what we’ve done.”

Rishi Sunak vows to crack down on sleaze and restore ‘integrity’ after Zahawi sacking

Monday 30 January 2023 11:44 , Maryam Zakir-Hussain

Rishi Sunak has vowed to crack down on sleaze in government and restore “integrity” after he sacked Nadhim Zahawi over his tax affairs.

The PM said he had made a “quick decision” to fire the Tory chairman after his ethics adviser found “serious” violations of the ministerial code, more than six months after The Independent revealed an HMRC investigation.

Speaking at NHS hospital in County Durham, Mr Sunak said he had acted “pretty decisively” by ordering Sir Laurie Magnus’ probe after it emerged Mr Zahawi had paid a £1m penalty to HMRC.

Asked why so many top Tories had trouble following the rules, Mr Sunak said: “The things that happened before I was prime minister I can’t do anything about – what I think you can hold me to account for is how I deal with things that arise on my watch.”

The PM said: “As you’ve seen with Nazhim Zahawi, I asked the independent adviser to look at it straight away, acted on his findings straight away. That should give you some confidence that these things matter to me.”

Adam Forrest reports:

Rishi Sunak vows to crack down on sleaze after Zahawi sacking

Tory anti-corruption campaigner calls for ‘tougher’ rules to stop repeat of Zahawi scandal

Monday 30 January 2023 11:55 , Maryam Zakir-Hussain

Senior Tory MP John Penrose, the Government’s ex ‘anti corruption tsar,’ has demanded new checks on Treasury minsters’ tax returns in the wake of the Zahawi affair.

Former minister Mr Penrose said HMRC should have special permission to expose Treasury ministers whom they suspect are dodging tax.

His comments come after Mr Zahawi was forced to resign amid uproar over being forced to pay a £1 million to HMRC while he was Chancellor, to whom HMRC is accountable.

Mr Penrose was the Government’s ‘anti corruption champion’ based in the Home Office until he resigned last year over Boris Johnson’s conduct in the ‘partygate’ affair.

Mr Penrose told BBC 5 Live (today) that HMRC should be able to break the customary confidentiality of individuals’ tax returns in the case of Treasury ministers.

He said: “We need to upgrade our system so we can prevent more of this happening in the future.

“We have got to have a system that works better. There might be a case for revisiting the question for Treasury ministers, because HMRC cannot say ‘hang on a second we think there’s an issue’ (with an individual) because they are bound by confidentiality.

“Maybe there should be a slightly tougher regime for Treasury ministers in particular.”

Sunak says he made a ‘very quick decision’ to sack Zahawi

Monday 30 January 2023 12:20 , Maryam Zakir-Hussain

Prime minister Rishi Sunak said he had made a “very quick decision” to sack Nadhim Zahawi once he was presented with the report by the ministerial standards watchdog Sir Laurie Magnus.

“We have an independent adviser, that’s what the government has, it’s not me who is doing it,” Mr Sunak said during a visit to County Durham.

“What I asked, when all these questions starting coming to light about Nadhim Zahawi, I asked the independent adviser to get to the bottom of it and provide me with the facts.”

On the basis of those facts “I was able to make a very quick decision that it was no longer appropriate for Nadhim Zahawi to continue in government”.

Mr Sunak added: “It relates to things that happened well before I was Prime Minister, so unfortunately I can’t change what happened in the past.

“What you can hold me accountable for is: what did you do about it? What I did, as soon as I knew about the situation, was appoint someone independent, looked at it, got the advice and then acted pretty decisively.”

I won’t be Tory chair, says William Hague

Monday 30 January 2023 12:45 , Maryam Zakir-Hussain

Former Tory leader Lord Hague dismissed speculation linking him to the vacant party chairman post after Nadhim Zahawi was sacked by the prime minister.

“Since I’ve seen reports of people placing bets on me being the new party chairman, please be aware that I will absolutely not be returning to politics in any shape or form, including that one,” he said.

Tory MP Marco Longhi has backed Lee Anderson – criticised for his comments on food bank users’ failure to “budget properly” – to replace Mr Nahawi.

Jacob Rees-Mogg has said Boris Johnson had “all the qualities” to be Tory chair. “He is charismatic, he rallies the troops – he’s a sort of fully loaded Conservative,” the Johnson loyalist told GB News.

No 10 rejects claims made by Zahawi allies

Monday 30 January 2023 13:04 , Adam Forrest

Downing Street has rejected claims made by allies Nadhim Zahawi, who have claimed he was treated unfairly during ethics adviser Sir Laurie Magnus’ short investigation into his tax affairs.

The ex-chancellor’s allies told The Spectator that he had told Tom Scholar, then permanent secretary at the Treasury, about the HMRC fine he received in September.

They also claim his ministerial register of interests was up to date in September, despite Sir Laurie Magnus’s report stating that he had failed to update it until this month.

But Rishi Sunak’s official spokesman rejected the idea any government officials knew of a penalty in September. “The penalty fact was not set out until a later date. As the [ethics adviser] made clear, [Mr Zahawi] did not declare the details of the fine … until January.”

Zahawi allies also said he only got a 30-minute hearing from Sir Laurie on Wednesday. But it is understood Mr Zahawi and Sir Laurie had a second conversation on Saturday.

Downing Street said Sir Laurie was working to publish the latest ministerial register of interests but gave no time line. The latest list was released back in May 2022.

No 10 also said the difference between the Zahawi tax row and Suella Bravermans security breach during her first stint as home secretary is that Ms Braverman “took accountability” for her actions.

Who is Nadhim Zahawi? All you need to know about the ex-Tory Party chairman

Monday 30 January 2023 13:10 , Maryam Zakir-Hussain

The Iraqi refugee who arrived in Britain aged nine with no English rose to No 11 Downing Street and propped up Boris Johnson’s ailing administration last summer, only to be brought down by scandal of his own, Joe Sommerlad writes.

All you need to know about the ex-Tory Party chairman Nadhim Zahawi

Nadhim Zahawi attacks media coverage in response to sacking by Rishi Sunak over tax affairs

Monday 30 January 2023 13:30 , Maryam Zakir-Hussain

Nadhim Zahawi has responded to his sacking by Rishi Sunak by attacking the media’s coverage but making no reference to his tax affairs.

In his letter, Zahawi fails to reference his tax affairs, but said he was “concerned” about the “conduct from some of the fourth estate in recent weeks”.

The former chancellor called it the privilege of his life to serve in successive governments and assured his support to the PM from the backbenches, adding: “Your five priorities are the right priorities, and I will do whatever I can to help you deliver them.”

Jonathan Kanengoni reports:

Nadhim Zahawi attacks media coverage in response to sacking over tax affairs

UK still a top-tier military power, says No 10

Monday 30 January 2023 13:45 , Maryam Zakir-Hussain

No 10 has insisted the UK remains a top-tier military power following claims a senior US general told defence secretary Ben Wallace the British Army is no longer regarded as a “top-level” fighting force.

Asked if Rishi Sunak still believes the UK is a top-level fighting force, his spokesman said: “Yes”, adding that the PM believes the British military personnel have “the equipment and capability to meet the threats they face”.

Defence sources told Sky News that cost-cutting measures have seen the status of the British Armed Forces decline in the eyes of world leaders. “You haven’t got a tier one, it’s barely tier two,” the US general reportedly told Mr Wallace.

Monday 30 January 2023 14:26 , Maryam Zakir-Hussain

That’s all for our live posts today. Thank you for tuning in!